Key takeaways
- ADA trades at $0.40 after losing 5.5% of its value in the last 24 hours.
- The altcoin could rally toward $0.50 if bullish momentum returns.
ADA could dip below $0.40
The cryptocurrency market is undergoing a correction after a strong start to the week. Bitcoin slipped below $92,000, while Ether is trading under $3,100 per coin.
ADA, the native token of the Cardano blockchain, lost about 5% of its value over the past 24 hours and is currently trading just above $0.40. Despite this pullback, the token still has the potential to rise in the near term thanks to solid fundamentals.
A rise could be supported by increasing open interest. According to CoinGlass, ADA’s open interest now stands at $796 million, up from $662 million recorded a week ago. Growing open interest suggests the possibility of upward price pressure for ADA in the near future.
That growing confidence encourages retail investors to take on more risk, contributing to buying pressure.
ADA targets $0.50 despite market correction
The four-hour ADA/USD chart remains bullish and intact despite the recent bearish move. At the time of writing, ADA dipped below the 50-period exponential moving average (EMA) at $0.43 and is trading around $0.403.
Still, the short-term outlook remains optimistic, supported by the Moving Average Convergence Divergence (MACD) indicator, which has maintained a positive divergence in recent days.
The RSI at 64 also indicates that buying pressure has returned, and the token could enter overbought territory if bullish momentum persists.
If bulls regain control, ADA could surpass the 100-period EMA at $0.505. An extended rally might push ADA to challenge the 200-period EMA zone around $0.593.
However, if the correction continues, ADA could fall below the $0.40 level and retest support near $0.3827.